I gave a piece of land to my daughter for her to build a house on. I received a 1099-S from her closing attorney. How do I show that on my taxes?

Forum|Forum|6 years ago
June 25, 2020
3 replies
8 views

How do I show the 1099-S in turbo tax

TurboTax Online

Critter

Level 15

If you gave the land why did the attorney report it as a sale ? And for how much ?

Carl

Level 11

A 1099-S is only issued if you sold the property. If you gifted her the property, no tax reporting document of any kind or type would be issued. So if you have a 1099-S that tells me you didn't gift the property at all, but sold it. So you'll report it as a sale of real estate. Where you report it in the program depends on exactly what it was you sold. Ras land that you used for personal use? Raw land that you held as an investment? Something else?

Anonymous

what you may have done was to sell the property to your daughter then forgive her obligation to pay you.

I'm guessing. if it was to be a direct gift of the property, all that was need was a title transfer - no closing document for sale. either a direct gift or a gift of indebtedness requires the filing of a gift tax return if the gift was more than $15,000.

you now have a sales of the property to report on your return. loss is not deductible because it was to a family member.

There is always the possibility the lawyer messed up and may not have given proper advice.